- The pound under pressure, also loses ground against the euro.
- GBP / USD with worst week since December, extends reversal from year highs.
The GBP / USD is trading at 1.3790, the lowest level since mid-February. The price continues downhill, in a context of strengthening the dollar and aversion to risk. The negative climate persists in the run-up to the release of the US employment report.
In addition to losing ground against the dollar, the pound did so against the euro on Friday, with EUR / GBP trading at 0.8650. Generally, risk aversion is usually a factor that affects the pound more than the euro.
The dollar continues to advance in the market, even though the rally has accelerated for hours. The dollar index (DXY) is above 92.00, at a high in months. At the same time, Wall Street futures point to a negative open with falls in the order of 1% for the main indices.
Fed Chairman Jerome Powell’s remarks on Thursday were followed by more hikes in Treasury yields, intensifying the negative climate in stocks. The focus is still there and in the previous one as well the US employment report will be published. with nonfarm payrolls and the unemployment rate.
Technically the GBP / USD is on a strong bearish rally, looking for next support. Here, if the decline continues, the 1.3750 area appears, as a possible level to have at least a pause in the bearish rally. The fall of these days has left a relevant technical damage to the bullish outlook, which casts doubt on the current trend, and for the moment favors an extension of the correction. The price appears to be targeting the 55-day moving average which is at 1.3720.
Technical levels
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